The Unfair or Deceptive Acts or Practices (UDAP) Rule took effect on April 1, 2022 and was amended on June 1, 2023 and again on February 14, 2024. The rule strengthens the supervision of insurance industry conduct and enhances consumer protection by clearly defining outcomes that are unfair or otherwise harmful to consumers.
History of the UDAP rule
The following is a timeline of the UDAP rule process, and the related documents published as per legislative requirements under the FSRA Act.
On February 14, 2024, the second amendment to the UDAP Rule took effect.
On January 30, 2024, the Minister of Finance approved the second amendment to the Unfair or Deceptive Acts or Practices Rule. This amendment will take effect on February 14, 2024.
On June 1, 2023, FSRA proposed revisions to a second proposed amendment to the Unfair or Deceptive Acts or Practices (UDAP) Rule. This amendment will, if approved, protect Ontario consumers from issues related to deferred sales charges on individual segregated fund contracts that already exist.
On May 17, 2023, the Minister of Finance approved the first amendment to the Unfair or Deceptive Acts or Practices (UDAP) Rule. This amendment will take effect on June 1, 2023.
On April 18, 2023, FSRA submitted the first proposed amendment to the Unfair or Deceptive Acts or Practices (UDAP) Rule to the Minister of Finance for approval.
On November 25, 2022, FSRA proposed two separate amendments to the Unfair or Deceptive Acts or Practices (UDAP) Rule. These amendments will, if approved, protect Ontario consumers from issues related to deferred sales charges on individual segregated fund contracts.
On April 1, 2022, UDAP Rule took effect. The rule was approved by the Minister of Finance on February 16, 2022. The rule strengthens the supervision of insurance industry conduct and enhances consumer protection by clearly defining outcomes that are unfair or otherwise harmful to consumers.
On February 1, 2022, FSRA re-submitted the UDAP Rule to the Minister of Finance as a minor technical amendment was made to the Rule (altering the Rule’s coming into force provision).
Amendment to Rule:
Amending s. 11(1) in order to specify the exact section of Schedule 5 of the Plan for Care and Opportunity Act (Budget Measures), 2021 which must be proclaimed in force for the Board Approved Rule to become an in force FSRA rule.
On December 20, 2021, FSRA submitted its UDAP rule to the Minister of Finance for final approval. The rule will replace the UDAP Regulation under the Insurance Act and will take effect once consequential amendments made by the government are proclaimed into force.
On July 14, 2021, FSRA released a revised version of the UDAP rule for consultation (revisions were made in response to feedback received during the first consultation period – see below)
